Cybersecurity agency rejects Google’s $23bn takeover supply

Israeli cyber-security agency Wiz has rejected a $23bn (£17.8bn) takeover supply from Google mother or father firm Alphabet, in what would have been its largest-ever acquisition.

In an inside memo to employees seen by the Daily News, Wiz founder and chief govt Assaf Rappaport mentioned he was “flattered” by the supply.

He mentioned the corporate would as a substitute search to achieve $1bn (£775m) in income earlier than promoting shares to the general public.

A supply near the deal advised the Daily News the supply was “very tempting”, however Wiz believed it was large enough to go it alone and try to change into the most important cyber-security firm on the planet.

Earlier this yr, the agency reported an annual recurring income of $500m (£387m).

And it claimed itself to be the fastest-growing software program firm in historical past in 2022, when it reached $100m (£74m) in annual income in its first 18 months.

Wiz and Alphabet have been approached for remark.

“I know the last week has been intense, with the buzz around a potential acquisition,” said Mr Rappaport in the memo sent to staff.

“While we are flattered by offers we have received, we have chosen to continue on our path to building Wiz.”

In turning down Google’s offer, Wiz will look to make an initial public offering (IPO) – a major step which would see the firm debut on a stock exchange.

Wiz is the third venture by Mr Rappaport and his three co-founders Ami Luttwak, Roy Reznik and Yinon Costic, who first met while serving in the Israeli military.

The group worked together in the country’s equivalent of the UK’s GCHQ or the US National Security Agency.

Many of the biggest Israeli cyber-security companies in the world have been created by people who served in this division, including Check Point, Palo Alto and Armis.

In 2012 the founders started a cyber-security company called Adallom, which was bought by Microsoft for $320m (£248m) three years later.

The founders took their team to the tech giant as part of the deal, where they worked on security products.

They left Microsoft and launched Wiz in March 2020.

Commentators have attributed the founders’ work at Microsoft for creating such excitement at Alphabet about a potential purchase of Wiz.

In May, it was valued at $12bn (£9.3bn) during a $1bn (£775m) fundraising campaign.

“This is the mindset we need in Europe,” said London Stock Exchange head of tech Neil Shah in a post on LinkedIn.

“The founders of Wiz walk away from a billion $ payday and have put it back on the roulette table in the hope of a more rewarding outcome in the long term.

“They saw where the value went last time when they sold. Good luck to them.”

Wiz has bases in New York, Tel Aviv and three different US places in response to its web site.